58245

U.S. Coating Specialties & Supplies, LLC

September 28, 2020Judge Woodrow
Denied / Government PrevailedTermination for DefaultContract Formation / Existence

U.S. Coating Specialties & Supplies, LLC appealed the termination for default of its contract with the U.S. Army Corps of Engineers. The Board denied the appeal, concluding that U.S. Coating failed to demonstrate the existence of a separate oral agreement to terminate the contract for convenience.

Material Facts

  • The U.S. Army Corps of Engineers awarded Contract No. W912EE-10-C-0019 to U.S. Coating in the amount of $11,383,000.
  • The contract included the standard FAR default clause, 52.249-10.
  • U.S. Coating's principal subcontractor, Mid-State Construction Company, terminated its subcontract due to non-payment.
  • The contracting officer terminated the contract for default on April 25, 2012, citing U.S. Coating's failure to make reasonable progress.
  • U.S. Coating filed for Chapter 11 bankruptcy on January 13, 2012, and consented to the rejection of the contract in bankruptcy.

Parties

Appellant
U.S. Coating Specialties & Supplies, LLC
Respondent Agency
U.S. Army Corps of Engineers
Contract Number
W912EE-10-C-0019
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